Rush Enterprises A Inc (RUSHA)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 183,725 | 201,044 | 148,146 | 312,048 | 181,620 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,673,310 | 1,428,670 | 1,003,500 | 1,026,790 | 1,507,390 |
| Cash ratio | 0.11 | 0.14 | 0.15 | 0.30 | 0.12 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($183,725K
+ $—K)
÷ $1,673,310K
= 0.11
The cash ratio of Rush Enterprises A Inc has exhibited varying trends over the past five years. The ratio measures the company's ability to cover its short-term liabilities with cash and cash equivalents.
In 2023, the cash ratio decreased to 0.11, which indicates that the company had $0.11 of cash and cash equivalents for every dollar of current liabilities, reflecting a lower liquidity position compared to the previous year.
In 2022, the cash ratio was 0.14, showing a slight improvement from the previous year. This suggests that the company had $0.14 in cash and cash equivalents for every dollar of current liabilities.
Similarly, in 2021, the cash ratio was 0.15, indicating a further improvement in liquidity compared to the preceding year. The company had $0.15 of cash and cash equivalents for every dollar of current liabilities.
A significant increase was observed in 2020, with the cash ratio standing at 0.30, which signifies that the company had a higher level of cash and cash equivalents relative to its short-term liabilities. This indicates a strong liquidity position in that year.
In 2019, the cash ratio was 0.12, showing a decline from the previous year. This suggests that the company had $0.12 in cash and cash equivalents for every dollar of current liabilities.
Overall, the cash ratio of Rush Enterprises A Inc has fluctuated over the years, indicating changes in the company's liquidity position. It is essential for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations efficiently.
Peer comparison
Dec 31, 2023